商务谈判 business negotiation

Business Negotiation Plan

课程代码04C12

课程名称商务谈判

专业商务英语时间2016年6月

组员崔梦瑶0134286

杨霞0134290

肖招兰0134288

徐云娟0136228

Business Negotiation Plan

Party A (seller): Gree Electric Appliances Inc. Of Zhuhai

Party B (buyer): Happiness Household Appliances Inc. of New York Date: June 6th,2016

Venue : meeting room of our company

Negotiation team: Cui Mengyao Xiao Zhaolan Yang Ming Xu Feng Li Tian

Theme of negotiation :

Party B would like to buy air conditioners from our company ,we will negotiate around the two main questions as following :

1. The price and the discount of air conditioners

2. The way of payment and the time for goods delivery

Background:

1. It is the first time for us to cooperate with Happiness Household Appliances Inc. of New York which is a startup and want to buy 3000 sets of air conditioner from company , our party should not only sell our products and expand our market with reasonable price, but also build up long-time relationship with them.

2.Current market is buyer’s market, and competition on air conditioners are fierce ,which means that Happiness Household Appliances Inc. of New Yorkenjoy

more advantage during negotiation.

3. Both of two sides have relatively strong intention to cooperate with each other. pricing strategy:

Goal:

General goal:

o ur party should not only sell our products and expand our market with reasonable price, but also build up long-time relationship with them.

Specific goal:

① satisfied goal: party B accept our price of 3500RMB CIF New York per set and agree to pay us by letter of credit .

② accepted goal: we give them some discount to encourage future business by 5%.

③ bottom goal: two party reach the agreement that we sell our products with lowest price while party B agree to increase the quantity they order.

Agenda

The first day:

9:00 a welcome in the airport

9:30--10:00 arrangement of hotel

11:30--12:30 serving them lunch and introduction

1:30--3:00pm visiting our company and factory

3:30--4:30pm preliminary negotiation in afternoon tea time

The second day:

8:30--11:30 formal negotiation and reaching agreement on

general issue

1:30--2:30pm reaching the agreement on details

3:00--6:00pm discussion about contract provisions

The third day:

9:00--11:00 signing the contract

1:00--5:00 accompanying them to visit our city

6:30--8:00 holding a Banquet to celebrate the cooperation

Analysis of advantages and disadvantages

Our advantages:

1. our air conditioner has good quality with advanced technology to save energy which is appreciated by customers , at same time, we have outstanding supply chain and after-sale serves

2. Our company enjoy good reputation both abroad and domestic. In addition , recently, our company devote a lot to improve advertisement and promotion, all of which are better for party B to promote their sale.

3. Our company have a bright international prospect and enjoy increasing market share abroad.

Our disadvantages:

1. Our price is higher compared with other suppliers because of our higher cost on advanced technology.

2. our time of manufacturing production is a bit longer.

Party B’s advantages:

1.Current market is buyer’s market, they have a lot of choices which can help them get lower price.

2. They have good online -sale mode, which can not only improve their own sale but also speed up supplier’ asset recovery.

Party B’s disadvantages:

1. It’s a startup which lacks strong capital and reputation to get better supplier than us.

2. It desperately need products to expand market.

Identification of interest

conflicting interest:

We want to sell our products with reasonable price, while party B would like to decrease price, so price will be major conflict. In addition , both side want to take the way of payment which does good for itself.

Common interest:

Both side have the intention to cooperate with each other so that itself can expand market and strength influence with the help of another party. At same time, as a seller ,with the gradual increase of competition in market and quick development of appliance, we want to decrease our storage as fast as possible; as for buyer, party B has strong desire for production to dispatch for customers, so both of us will agree to make quick shipment.

Negotiation strategies and tactics

1.To use cooperative strategy to manipulate the negotiation,and try our best to maintain good relationship.

2. Avoidance. To focus more on discussing issues that benefit us such as our quality , advanced technology and great reputation which appear to them, if we can ,we are better use data to objectively state the those facts,and avoid some week aspects go against us.

3.To Carry out Limited Authority strategy when the other party puts forward some

unacceptable requirements.

4. To ask some questions and listen to them carefully so that to seize some points that can help us better understand their goals and requirements.

5.To pause sometimes, if there is any drawbacks for us, we can pause and find out the helpful Solution.

6.Step-by-step strategy. We should come up with our expected benefits skillfully from easy to difficult, and act cautiously.

Negotiation procedure:

opening stage:

Honest start and cooperate to exploit strategy: firstly, my company sincerely

and franklyshows that our purpose and overall goal, emphasis on our cooperation sincerity,butdonotreveal any of our requirements and conditions; Secondly, with adopting the suitable tactics of point, listen to the party B statement, grab point and vulnerabilities, and along the holes for the attack, breakthrough, to occupy the critical initiative.

Negotiation stage:

Step-by-step strategy: 1.we will offer our price of 3500 RMB CIF New York per set

2.If they insist in concession,we can reduce our price by 5% to maintain good relationship and get promise of next cooperation

3.we can give a little more discount if they agree to use L/C to pay

Holding the bottom line:4.We can use the principle of concession suitably. We sh ould strictly grasp the ranges of the concession, and give our final offer in the right ti me but never give in when we reduce our price to bottom line of 3000 RMB CIF New York per set

Stage of suspension:

If there exist some problem s between two party that can’t be settle approximately right now ,reasonable using a pause with a certain sense of humor can not only suspend the problem

so that we can spend more time to develop some new constructive solutions but also calm down to maintain good relationship.

The last stage :

reach agreements, clear the final negotiations as a result, the present meeting record and thecontract template, please confirm each other, and formally sign the contract time as bothdetermined.

More importantly, we should buried an suitable opportunity to enhance relationship after negotiation in order to establish long-term cooperation with B party.

Possible problems and relative solutions:

①possible problems:

The other party may require the price reduction without our reach, and stress that other suppliers can offer lower price than me.

corresponding solutions:

At that time, we should take data to explain for party B that our higher price is because of good quality advanced technology and so on, which are benefit for their promotion. In addition, our worldwild-brand is intangible assert that others can not compare with.

②possible problems:

The other party may not agree to the requirement of paying by L/C. Because it is increase their cost.

corresponding solutions:

We will sincerely declare the fact that it is the first time for our two party to cooperate, L/C will offer more guarantee for both of us,and we can approximately promise that more discount and more flexible way of payment in next business. If desperately needed, we can give some discount to reach agreement on this term. Anticipated outcome:

Both of two party close the deal satisfactorily and build up long-term relationship.